Congestion surcharge

Generally, the person or entity dispatching a vehicle to a customer is responsible for collecting and paying the surcharge. This includes:

• individuals and businesses that receive transportation requests directly from customers and use their own vehicles to provide the transportation; and
• transportation network companies as defined in Article 44B of the Vehicle and Traffic Law.

However, for medallion taxicabs and green cabs, Technology Service Providers (TSPs) are responsible for withholding and remitting the congestion surcharge and filing returns. Medallion owners and agents do not need to file a return for the congestion surcharge for any trips which your TSP has taken over collection and filing responsibilities for you.

TSPs will withhold the surcharge due to New York State prior to distributing funds to the owners or agents from the fares collected by the TSPs.  If the TSPs are unable to withhold the surcharge in full from a day's fares, they will withhold it from the next day's fares. They will continue with that process until the surcharge due has been withheld in full from the fares collected. If after 12 months the TSPs are unable to withhold the surcharge due, the owner or agent, if applicable, will be responsible for the outstanding surcharge.

Taxicab medallion owners and their agents: see Note.

You must keep detailed records for all transportation that is subject to the surcharge. Information should include, but is not limited to, the following:

• location, date and time where each trip begins and ends, and the route taken. In the case of for-hire vehicles, also include the date, time and location where the vehicle enters and/or leaves the congestion zone. In the case of pool trips, also include the date time and location where each individual or group that separately requests transportation enters and exits the vehicle
• vehicle information, license plate number and jurisdiction, or any number assigned to the vehicle by a regulatory agency
• all amounts charged and collected for the trip, including fare, taxes, and surcharges (including the congestion surcharge)
• true and complete copies of any records that must be kept as required by any applicable regulatory department or agency.

Keep all records for a minimum of three years from whichever is later:

• the date you filed the return, or 
• the date such return was due. 

In the absence of a filed return, the maintenance of records from earlier periods is required. Copies of these records must be electronically transmitted to the Tax Department upon request.

Compliance with the above may be achieved by using a system or equipment that is required to be used in for-hire vehicles by a regulatory agency, so long as such system or equipment is capable of collecting, storing, and electronically transmitting all required records and information.

The surcharge amount depends on the type of vehicle used to provide transportation in or through the congestion zone. The surcharge is generally:

• $2.75 for each for-hire transportation trip in a vehicle that is not a medallion taxicab or a pool vehicle.
• $2.50 for each trip when the transportation is provided by a medallion taxicab vehicle.
• $0.75 for each pool trip.

This amount must be passed through to passengers and reported separately on any receipt given to the passenger.   

If you are required to collect the surcharge, you must file your return and pay the assessment online on a monthly basis. To file and pay online, you will need to:

1. Create a Business Online Services account with the Tax Department (or log in if you already have an account).
2. Select the ≡ Services menu in the upper left-hand corner of your Account Summary homepage.
3. Select Other taxes, then select Congestion surcharge web file from the expanded menu.

For important payment information, see ACH debit block.

Returns must be filed, and the balance due must be paid, no later than 20 days after the end of the month that the return covers. If the due date falls on a Saturday, Sunday, or legal holiday, the return is due on the next business day.

Note: Agents of taxicab medallion owners cannot file on behalf of their clients using the agent's Online Services account, even if the agent pays the tax for multiple medallions for the New York City taxicab ride tax. For purposes of the congestion surcharge, each client is required to file separately using the client's Business Online Services account. If clients would like their agent to file a return on their behalf, they may add their agent as a user to their Online Services account. For additional information on how to add a User (with specific permissions), see Adding a User to a Business Account. We may issue assessments to any client who fails to file individually.

If you do not file your return and pay the balance due by the due date, you are subject to penalties, interest, or both.

You can compute your penalty and interest due using our Penalty and Interest Calculator.

If you fail to pay the surcharge when due, in addition to the regular penalties assessed, the Department may impose a penalty equal to 200% of the total surcharge due, unless it is shown that such failure is due to reasonable cause and not due to willful neglect.

Black cars are vehicles that are affiliated with a black car base and:

• are dispatched on a prearranged basis;
• are owned by franchisees of the base or are members of a cooperative that operates the base; and
• more than 90% of the base’s business is on a payment basis other than direct cash payment by a passenger.

Buses are any motor vehicles with a seating capacity of at least 15 persons, excluding the driver, that do not otherwise qualify as limousines.

Green cabs (hail vehicles) are vehicles that are affiliated with a base, and authorized by the New York City Taxi and Limousine Commission (TLC) to accept hails from prospective passengers in the streets of New York City, but that do not have a medallion issued by the TLC affixed to it. In addition to green cabs, hail vehicles are also known as Boro taxis or street hail liveries.

Limousines are vehicles with a seating capacity of up to 14 persons, excluding the driver, and any vehicle with a seating capacity of between 15 and 20 persons, excluding the driver, that has only two axles and four tires.

Livery vehicles are for-hire vehicles that are affiliated with a livery base station and:

• are dispatched from the base on a prearranged basis;
• are designed to carry fewer than six passengers; and
• passengers are charged for service based on a flat rate, time, mileage, or zones.

Medallion taxicabs are vehicles (commonly referred to as yellow or green cabs) that have a medallion issued by the New York City Taxi and Limousine Commission affixed to them.

Taxis are for-hire vehicles that carry passengers in New York City and:

• are duly licensed with a medallion by the New York City Taxi and Limousine Commission; and
• are permitted to accept hails from prospective passengers in the street.

Technology Service Provider (TSP) means a person that acts by employment, contract or otherwise on behalf of one or more taxicab owners or Hail vehicle owners to collect the trip record for a taxicab trip or Hail vehicle trip.

Transportation Network Company (TNC) is any person or entity that:

• is licensed through the DMV; and
• operates in New York State, exclusively using a digital network to connect passengers with TNC drivers who provide TNC prearranged trips.

• Congestion surcharge TSB-Ms
• Important Notice N-19-2, New York State Supreme Court Lifts Temporary Restraining order on Congestion Surcharge